Bithumb, a leading cryptocurrency exchange in the world, is keen on being listed on major stock exchanges in the United States. Instead of following the initial public offering (IPO) path to becoming publicly available, the platform is following a not so popular but previously trodden path – reverse merger.
As noted by CNBC:
Blockchain Exchange alliance, a Singapore-based holding company that owns a controlling interest in the Korean cryptocurrency exchange Bithumb, is looking to list in the U.S by acquiring a publicly traded company here [U.S].
The move has already gained some momentum since Blockchain Industries, a publicly traded firm in the United States, has already signed a binding letter of intent with the controller of Bithumb, Blockchain Exchange Alliance.
This method of getting into the public markets has been tried and tested by other cryptocurrency platforms including Mike Novogratz’s crypto bank when it sought to be listed on the Canadian stock market. The advantage of following a reverse merger instead of an initial public offering is that it greatly shortens the time it takes to be publicly traded.
Since Blockchain Exchange Alliance has its eyes set on the New York Stock Exchange or Nasdaq, it plans to up-list Blockchain Industries which is currently involved with over-the-counter markets “which are known for trading penny stocks.” However, the up-listing will require Bithumb’s controller to adhere to stricter terms and conditions.
The United States market is part of the Blockchain Exchange Alliance’s plans:
To buy up and consolidate exchanges across the world. With Bithumb leading the way in South Korea, it plans on creating a global crypto exchange alliance, which is already underway. It plans to have nine exchanges by the end of this year, and as many as 40 by the end of 2020.
With Bithumb being a respected crypto exchange globally, do you think its listed in the U.S will attract investors?
Let us know your thoughts in the comments section below.